Analysis & Opinion

Dec 30 (Reuters) - Auto parts supplier Tower International
Inc (TOWR.N) said it would take a fourth-quarter pretax
impairment charge of $5-$10 million as its solar customer
Stirling Energy Systems terminated a purchase contract.

In a regulatory filing, Tower said it has been notified
that the power-purchase agreement for one of Stirling Energy
Systems' two principal solar projects -- the Calico project --
has been terminated.

Tower International said the charge reflects previously
disclosed invested capital costs of about $15 million.

It is "prudent at this point" to anticipate that Stirling's
other principal solar project -- the Imperial Valley project --
is likely to be similarly affected, The company added.

Shares of Tower International, which went public in
October, closed at $17.55 on Wednesday on the New York Stock
Exchange. They have gained 35 percent of their value since
debut.
(Reporting by Bijoy Koyitty in Bangalore; Editing by Maju
Samuel)